An advantage of exchange-traded funds is they occasionally can be purchased at significant discounts to book value.

Question

Quizplus · Accepted Answer

Exchange-Traded Funds (ETFs) trade on stock exchanges at market prices that can differ from their net asset value (NAV), but they are designed to closely track their NAV, not to be purchased at significant discounts or premiums to book value, unlike closed-end funds which can trade at substantial discounts or premiums to their NAV.

An Advantage of Exchange-Traded Funds Is They Occasionally Can Be